How to Reinvest Mandatory 401(K) Payouts

Buffalo NewsJuly 26, 2010

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Summary


Risk vs. reward is one of the classic debates of investing. Sacramento, Calif.-based investment adviser Michael R. Tate answers a reader's question on safe returns.

Q: I just reached age 701/2, when I have to start taking the required minimum distributions from my 401(k) account. My question is where to invest the withdrawals (about $6,000 annually)? I no longer have faith in the stock market, so I am interested in safe, short-term investments, possibly Treasuries or something that provides income (other than bank CDs).

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How to Reinvest Mandatory 401(K) Payouts

A: You hit on a very important point: risk vs. reward.

In the current low-intere...

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